1、 If I were a banker, what would I do?
The law of the stock market is one win, two draws, and seven losses, which means that more than 70% of people will lose money. How can retail investors stand among the top 10% of profitable individuals? I believe that institutions are constantly studying the psychology and behavior of retail investors in order to make money. As retail investors, we can consider ourselves as institutional investors and also study the psychology and behavior of institutions. Only then can we stand undefeated in this market full of traps, fraud, scams, and rumors.
If I were an institutional investor and wanted to invest in a stock, I believe I would first need to find one that is of the right size, with a promising future that is unlikely to go bankrupt within a few years. Then I went to visit the company leader and told him that I wanted to invest in his stock, asking for their cooperation. How to cooperate? When I am earning money, I try to flatten my performance or hide profits appropriately in my reports. This is something that companies can easily achieve, as long as they make appropriate adjustments to their financial statements, such as withdrawing certain gains and losses in a quarter to make their reports appear loss making; Alternatively, the expenses for the following years could be amortized in half a year, which would make the current financial statements look very difficult. Before that, I definitely need to put in some chips, which are mainly used to smash the market.
How to collect these chips that smash the market? I won't collect slowly every day because it will cause the stock to rise every day, making it difficult to receive enough chips and easily being snatched up by retail investors. This will also lead to an upward trend in technical indicators and increase my collection costs. I will use the method of a big rise to collect data on a certain day. After several consecutive days of decline, retail investors are pessimistic and disappointed. Suddenly, with a big rise, those who are trapped see hope and will not throw it out; For those who make short-term profits, they may be ready to sell. In fact, at this price point, I am just a chip to smash the market, and I don't need to collect a lot. Therefore, it is easy to achieve my goal by using a sudden surge.
The next day, let's have a low opening. Why open low instead of high? Because the chips I collected yesterday were not intended to make a profit, and I wanted the short-term chips that followed the trend yesterday to help me break the market. If I open high, it is easy for the short-term chips to make a profit, and they will have more funds to compete with me for rewards during the decline. Therefore, I must open low to consume these short-term funds.
In this downward trend, I will gradually use single positions to support the bottom, as I want to form my own bottom position. After several days of continuous decline, some cutting chips will replenish their positions. At this time, I cannot let them replenish, I must quickly eat up and let them chase the trend. When a chasing trend is formed, I will sell the bottom part of the chips high, firstly to reduce costs, secondly to free up funds, and then quickly smash them down. Similarly, I will push and smash at the same time, so that I can get more chips at a lower price.
When it falls to a very low level, basically no one competes with me for chips, because during this decline, I continuously sell high and buy low, oscillate greatly, and trap most of the bottom traders and rebound traders in the decline, or neglect their losses, making them afraid to invest in this stock. At this point, my goal is achieved.
And the cooperation of the company is crucial at this time. If the long-term performance does not improve, most retail investors will become fearful and panic due to doubts about whether it will be ST, and the high position chips will continue to fall. I can continuously sell high and buy low in the bottom horizontal market to collect chips, which may take a long time. The key depends on the degree of drop of the top chips. If the high position chips do not loosen for a long time, then I will not buy this stock.
When I collect enough chips, the company's performance will also improve, because in my collection of chips, the company will spread out all the profits, losses, or expenses that can be thought of in the next few years in that year and a half, and the subsequent reports will naturally look good. At this point, it's effortless for me to pull it up, and there's no need for much cost. When others in this market see that this stock is so excellent, there will inevitably be many followers, and I gradually reduce my holdings in this process.
What benefits can the company gain from such cooperation? It's actually quite simple. If I pull stocks to a high level, they can also sell at a good price; At low levels, they can still buy their own stocks and earn a reputation, which will result in considerable returns. Why not do it? Of course, this should be in line with the overall trend of the market. In the meantime, retail investors should know what to do.
Of course, if I were to become a banker, I would also need to consider many issues:
The first is the monitoring of the China Securities Regulatory Commission. Although they dare not touch tigers or act recklessly for tigers, it is not a problem to crush flies. Therefore, manipulating stocks cannot give them any leverage. At this time, it is necessary to consider multiple accounts or mobilizing several large private equity investors to fight collectively.
Secondly, we need to consider the issue of industrial capital. If they see considerable profits when we pull, and end up throwing out a large number of chips, then we will be in a miserable situation and will inevitably lose money and be eliminated. Before doing so, we must first communicate with them, and also understand how many circulating stocks they have and their intention to sell. This is the problem of size difference.
The third thing to consider is Laozhuang. If this stock has not been abandoned by Laozhuang, I will try my best not to touch it, because once Laozhuang does the opposite, you will die tragically, just like China Unicom's speculative capital. That's why stock selection is very important.
The fourth issue is the overall market situation, with many following the trend and insufficient stock funds in society. As it is now, most individual or large investors are being slaughtered, and it is not suitable to invest in stocks. If you lure others to sell, you end up being trapped in it The most suitable thing now is to invest in stocks.
Most people have a mentality that if they buy a stock for 20 yuan, they won't sell it when it drops to 15 yuan, 10 yuan, or 5 yuan. However, if they want to drop to 2 yuan and then pull back to 4 yuan, many people will basically cut their meat when they see it double, especially if it goes down or sideways for a long time.
If all these issues are resolved, the smashing process will begin. How much is appropriate to smash? According to the overall market situation, daily trading must follow the market. When the market drops sharply, you must dive deep. At this time, the cost is very low, as long as you use a small amount of chips to break open the key points, there will be stop loss orders to help you continue to strike. However, it is necessary to add some chips at the end of the trading session to prevent the market from falling or rising the next day. With a certain amount of chips, it is easy to flexibly control, that is to say, to keep an eye on indicator stocks during trading.
Why focus on indicator stocks? The key lies in the cost. With the fluctuation of the market, your cost is the lowest. When the indicator stocks fall, you also fall, and the amount of chips used to smash the market is the least, because not many people dare to buy and can smash deeply. When the market rises, you don't need to buy much. Just buy the chips at the key points. Some people will push the stock price up. When it reaches a certain high point, you can also sell some of the chips that were bought at the low level, which can free up some funds to make a difference.
So, the situation we see in the stock market is that if it goes up, everyone goes up, and if it goes down, everyone goes down.
There are several types of people in the stock market, including trend investors, those who ignore after being trapped, technical investors, fundamental investors, long-term traders, short-term speculators, and so on. I want to be a trader in this stock, and I have to face these people. I will try my best to make them earn less or lose interest in the stock I control. At this point, I have to use many methods to deal with them, because if they earn more, it means I earn less. If they don't lose interest, I won't make any money.
